Zillow Earnings Profit Rises, Traffic Falls

Zillow Group reported first-quarter 2026 results in a press release on May 6, 2026. The company posted higher profit and revenue despite a decline in site and app traffic, and issued second-quarter revenue and Adjusted EBITDA guidance.

Profit, Revenue, Traffic, Guidance, and Legal Costs

For the quarter ended March 31, 2026, Zillow Group reported revenue of $708 million, up 18% year-over-year. Net income rose to $46 million, or $0.19 a share, compared with $8 million, or $0.03, a year earlier. The net-income margin expanded to 6% from 1%, while the Adjusted EBITDA margin remained steady at 26%.

Revenue from for-sale operations increased 12% to $514 million, driven by $450 million in residential revenue and $64 million in mortgage revenue, which grew 56%. Rentals revenue surged 42% to $183 million, fueled by 57% growth in multifamily. Zillow mortgage originations nearly doubled to $1.5 billion, with Zillow Home Loans ranking among the top 25 purchase lenders nationally. Zillow Investor Relations noted that the residential real estate industry grew 2% in the quarter.

Adjusted EBITDA rose 19% to $182 million. Adjusted free cash flow reached $127 million, and operating cash flow doubled to $200 million. The company repurchased 13.5 million shares for $626 million, leaving cash and investments at $788 million and an undrawn revolving credit facility of $500 million.

Average monthly unique users declined 3% year-over-year to 220 million, and quarterly visits fell 3% to 2.3 billion. In contrast, Comscore reported a 12% increase in unique visitors to 127 million. Zillow highlighted Comscore as the only large company in its category to expand audience reach over the past six quarters.

For the second quarter, Zillow guided revenue between $750 million and $765 million and Adjusted EBITDA between $150 million and $165 million. It reiterated a full-year outlook calling for mid-teens revenue growth and expanding Adjusted EBITDA margins.

Legal expenses weighed on results, with $11 million in incremental costs recorded in the first quarter. The company expects roughly $20 million in second-quarter legal expenses tied to a scheduled FTC trial over a rental syndication agreement with Redfin. The first-quarter legal costs represented a 160-basis-point headwind to Adjusted EBITDA margin. Other active lawsuits include cases brought by Compass and CoStar.

Pre-report analyst estimates projected earnings per share in the $0.11–$0.14 range and revenue near $705 million, both below the reported figures. That guidance and rising legal costs could limit margin expansion despite growth in rentals and mortgage originations.